On Energy Source:
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The Rio Tinto rumour mill is buzzing with the idea that BHP Billiton could yet again be interested in buying part or all of Rio Tinto, following a Sunday Telegraph report and a Friday note from respected mining analyst Michael Rawlinson.
Revived speculation about a BHP-Rio megamerger follows from a wider controversy about Rio’s agreed deal with Aluminum Corp of China (Chinalco), which would see Rio selling stakes in top-tier mines and smelters to Chinalco, plus an exclusive chunk of convertible bonds, in return for almost $20bn that Rio would use to pay off crippling debts. Some powerful UK and Australian investors remain opposed to the deal, and Australian regulators are making signs that they might be more opposed to China’s creeping influence in the Australian resources sector than first thought. Read more